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Holiday Let mortgages

Bath Building Society is one of only a few lenders to offer holiday let mortgages for people who want to buy a property to rent as a holiday let. Also available to Limited Companies. We will consider remortgaging an existing holiday let property for home improvements or purchase of another property. Personal use of the property is permitted for up to 60 days and we will allow the property to be let out as an Airbnb during periods when the property is unoccupied. 

Get an idea of how much you can borrow with our affordability calculator. The calculator will work out the maximum amount you could borrow by using a 5 year fixed rate to calculate the highest mortgage possible. Where a 5-year fixed rate is not available, the lowest rate will be used, stressed at +2%. Please contact the team to discuss your specific circumstances.

Mortgages are secured against your property. You could lose your property if you do not keep up payments on your mortgage.

Here are some Frequently Asked Questions about Holiday Let mortgages.

Affordability calculator

Find out how much you can borrow with our affordability calculators.

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Monthly payments calculator

Use the calculator to find out what your monthly payments might be based on the mortgage product and the type and term of your borrowing.

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Mortgage details

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This is the maximum amount based on the information you provided. Your mortgage adviser will take you through the application process and will calculate the amount you can afford to borrow based on your income after the deduction of those expenses and commitments. Further restrictions may apply for specialist products.

Variable rate Holiday Let mortgages

Our Standard Variable Rate (SVR) is currently 7.99%. Please note that from 1st March 2025 the SVR will reduce to 7.79%. There may be a limit on how low your interest rate can fall. This is called an ‘interest rate floor’. The interest rate floor applicable to your loan will be specified in your loan documentation.

Product name
Holiday Let variable for 2 years
Initial rate
5.69%
Discount from SVR
2.30%
Overall cost for comparison
7.9% APRC
Max LTV %
75%
Product fee
£999
Mortgage repayment
£XXX.xx per month
Calculate
Product name
Ltd Co Holiday Let variable for 2 years
Initial rate
5.69%
Discount from SVR
2.30%
Overall cost for comparison
8.0% APRC
Max LTV %
75%
Product fee
£1,499
Mortgage repayment
£XXX.xx per month
Calculate

  • Representative example

    Representative example: A mortgage of £155,000.00 taken out for a period of 25 years on an interest only basis.
    Monthly instalments: £807.29 per month for 23 months, followed by £1,037.98 per month for 276 months.
    Total amount payable: £461,964.15
    Total amount of credit: £155,000.00
    The total amount payable includes a valuation fee of £315.00 , a product fee of £1,499.00 and a closing fee of £100.
    The overall cost for comparison is 8.1% representative APRC.
    This example is based on our Holiday Let (Limited Company) , 2 year fixed mortgage. It is based on our current Standard Variable Rate of 7.99% with no fees added to the mortgage.

    Please ask for a personalised illustration for your own particular requirements.

  • Repayment type
    Interest only and repayment options available
  • Key features
    • Availability – Purchase & Remortgage up to 75% Loan To Value (LTV). Minimum deposit of 25% required.
    • Flexibility – Overpayments up to 20% of the capital balance as at 1st January are allowed in each calendar year without penalty.
    • Portable.
  • Early repayment

    For full repayment of a 5 year fixed product, you will pay 3% of the outstanding balance in years 1, 2, 3 & 4; 2% in year 5, plus a Closing Administration Fee (currently £100).

    For overpayments of a 5 year fixed product, you will pay 3% on any amount exceeding your 20% limit in year 1, 2, 3 & 4, 2% in year 5.

    For full repayment of a 2 year fixed or discounted product, you will pay 3% of the outstanding balance in the first year and 2% in the second year, plus a Closing Administration Fee (currently £100).

    For overpayments of a 2 year fixed or discounted product, you will pay 3% on any amount exceeding your 20% limit in the first year and 2% in the second year.

  • Product fees
    • Valuation fee.
    • Product fee £999 for individual applications and £1,499 for limited company applications.
  • Lending criteria

    Lending Criteria and Information

    Loan:Size: Minimum £50,000, Maximum £500,000 at 75% and £500,000 to £1,000,000 at 70%
    Term: Minimum 5 years, Maximum 40 years.
    Repayment Type: Capital Repayment, Interest Only
    Property:Minimum value is £100,000. The property must be in England, Wales or Mainland Scotland, Shetland, Orkney, Arran, Bute, Skye, Harris & Lewis, Mull and Islay and be of standard construction. No properties on sites. Maximum 5 bedrooms.
    All applicants:Must be a UK resident. Minimum age 21. No maximum age, subject to income in retirement.
    Income:Household income must be at least £30,000.
    Rental:The calculation is based on the actual or expected rental on an AST basis. Rent must cover 125% of the ‘stressed mortgage payments’ for basic rate tax payers, or 145% for higher rate tax payers. The stressed mortgage payment is based on the product rate +2% or 5.5% whichever is higher.
    Underwriting:We take a flexible approach to underwriting and will consider each case on its merits. We do not credit score. The actual rate and APRC for your case will depend on your circumstances and our assessment of the risk. We will consider holiday lets throughout England and Wales subject to acceptance by the Society’s valuer.
    Other informationYou must be able to service your existing commitments from income without recourse to the rent from this property. If you have a Buy to Let or Holiday Let portfolio, you will need to demonstrate that this is self-funding.
  • Useful stuff

    Mortgage Conditions

    Mortgage Conditions Scotland

Customer feedback

Read what our members say about Bath Building Society on the review platform, Smart Money People

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The Bank of England Base Rate decreased by 0.25% to 4.50% on Thursday, 6th February.

For variable mortgage customers our SVR will reduce to 7.79% effective from 1st March.